Exact Sciences to buy Genomic Health for $2.8b

Exact Sciences Corp, a $454m molecular diagnostics company is acquiring Genomic Health Inc, a $394m cancer detection company for $2.8b. The deal joins two of the strong brands in molecular and cancer diagnostics, Cologuard® and Oncotype DX®, providing a strong platform for continued growth; and forms a first class commercial, research, development and clinical organization, with enhanced scale and scope in cancer diagnostics. The combined global infrastructure accelerates the ability to provide new innovative cancer diagnostics. Expands Exact's testing capabilities to breast and prostate cancers. Exact will also gain access to Genomic’s oncology sales force. Genomic Health's product portfolio includes tests for breast, prostate and colon cancer. The combined company is positioned to deliver ~$1.6b in revenue and ~$1.2b in gross profit in 2020. Deal value - $2.8b on sales of $394m (7.1x) and EBITDA of $29m (96.5x).

Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers